Ofgem Snubs Energy Firms: New Customers Won’t Get Exclusive Cheap Deals
Energy suppliers are blocked from offering exclusive lower prices just for new customers. Regulator Ofgem has decided to keep the ban on acquisition-only tariffs (BAT) to make sure all households can grab the best energy deals.
Fair Prices for Everyone, Not Just Newbies
The ban stays put following a May consultation where most suppliers and consumer groups warned against lifting it. They fear ending BAT would hit inactive switchers hard and fuel the dreaded ‘loyalty penalty’—where loyal customers get ripped off while newbies bag discounts.
Campaigners argue the ban protects customers in debt who can’t switch suppliers for months or even years, ensuring they still have access to better rates with their current provider.
Ofgem Pledges to Protect Consumers
Charlotte Friel, Ofgem’s interim director for consumer protection, said: “We’ve heard consumers loud and clear—and we’ve responded. We’re committed to acting in the best interest of all customers.”
She flagged strong backlash against short-term cut-price deals that exclude existing customers, stressing that consumer trust is vital for a healthy market.
“Competition drives better standards, but denying the best deals to everyone risks undoing progress restoring confidence in the energy market,” Friel added.
Why Was the Ban Introduced and What’s Next?
The BAT was rolled out in April 2022 as a temporary fix during the energy crisis, cracking down on risky short-term discount tariffs aimed solely at snatching customers from rivals.
With signs of market stability, Ofgem initially planned to scrap the ban from October 1, 2024, to boost switching options. But after hearing public concerns, bosses have extended the ban to at least March 31, 2025, to better assess its impact.
Big Review of Energy Market Underway
Ofgem is running a thorough review of the energy sector, looking at the future of price protections and whether the price cap still fits a changing market. The possibility of a permanent ban on acquisition-only tariffs is also on the table.
Friel said: “We will report back in due course. Ongoing analysis and feedback will shape the future of energy market rules.”
Bottom Line: Fair Access for All Energy Customers
For now, BAT remains, ensuring all customers—even those stuck with their current supplier—can access the best deals available. It’s a win for fairness and market stability.
